Boutique Firm Services: All the Needs of Lawyers and Law Firms
High-End CPA Firm for Law Firms and Attorneys in Fort Lauderdale and Hollywood, FL
As a CPA Firm for Law Firms and Attorneys, we understand that legal practices are highly specialized. As an attorney, your time is your business’s inventory, and it is vital to work with an accounting firm that understands how busy you are, how valuable your time is, and how important it is that we know how to handle your account quickly. As a CPA for law firms and lawyers, Bette ensures that her team helps you maximize the benefits available to your firm and your personal taxes. Law Firm Accounting systems need to be able to handle regular billing by junior staff, with regular reviews by the partners and a focus on wealth building for the owners.
Our firm has been handling law firms since we opened, and we are prepared to meet your needs quickly and efficiently.
Trust Accounts
CPA Firm for Law Firm Trust Accounts
The Florida Bar mandates meticulous accounting protocols for trust accounts, encompassing monthly reconciliations, detailed journals, and precise alignment of all cash with bank statements. While regulations may vary among state bars, the majority underscore the necessity for impeccable accounting. Partnering with a CPA specializing in law firms becomes imperative. As legal professionals, adherence to ethical standards is paramount. Engaging a CPA firm guarantees expert oversight of your trust account management, ensuring compliance and precision.
Legal Trusts – IOLTA
Interest on Lawyers Trust Accounts
Managing trust accounts is crucial as trusted guardians of client funds. Keeping your account records current, correctly distributing interest, and designating charitable donations is essential for ethical compliance with your state bar. The Florida Bar offers charity recommendations for the Interest on Trust Accounts Program, and we can adapt them to your preferences. We focus on dependable service that seamlessly meets your firm’s and clients’ needs.
Expense Tracking
Law Firm CPA Firms Help You Track Expenses
Poor expense tracking can lead to billing problems for clients and money loss for attorneys. Accounting firms that don’t specialize in law firms may not understand the importance of correctly tracking all expenses and assigning them to client-case combinations. Effective practice management systems make it easy for your staff to quickly identify the accounts for accurate client billing. Additionally, we ensure that any unbillable expenses are appropriately recorded, so you can claim all the deductions your firm is entitled to.
Want to write off expenses related to your car? You may need to track mileage – but we’ll make it easy for you.
Operating Agreements
Experienced CPA Insight into Your Law Firm’s Operating Agreement
Every law firm operates under a unique operating agreement tailored to the specific needs of its attorney owners. It is imperative that your accounting system aligns seamlessly with this agreement. Legal partnership structures and tax regulations often pose challenges, especially for multi-partner law firms. Even if you have a personal accountant, it’s advisable to engage a CPA specializing in law firms.
Consider involving us at an early stage. We can ensure that your business and legal objectives are aligned, preventing potential overpayment of taxes due to incorrect income categorization or restricted expense write-offs. Navigating the IRS Tax Code can sometimes lead to counter-intuitive interpretations of tax laws, making a CPA’s expertise invaluable during partnership formation or accounting system overhauls.
Gifts to Staff
Manage the Tax Treatment of Staff Gifts
Gifting bonuses to junior staff members is a common practice among law firms to reward their top talent. Handling these incentives improperly can lead to unintended consequences. Mishandling may result in staff members not fully appreciating the contribution due to excessive tax withholding, or the bonus could be erroneously categorized as a non-deductible gift by the firm.
Given that law firm partners typically fall into a higher tax bracket compared to their staff, it becomes crucial to meticulously document and track these bonuses. Failure to do so can lead to an overpayment of taxes as the funds may be subjected to the firm owner’s higher tax rate instead of the employee’s lower tax rate.
Law Firm CPA – More Info
Time Sensitivity
Time is Money, and We’re Here to Save Yours! As busy professionals billing by the hour, you deserve to focus on serving your clients while we take care of your needs. Let our dedicated staff handle the rest!
Intelligence
No paralegal handoffs here. All high-level discussions are led by Bette, who boasts an MIT engineering background and a Master’s in Accounting to match your needs seamlessly!
Similar Firms
Just like small law firms, boutique CPA firms typically have one to four owners and a dedicated junior staff. When it comes to managing payroll, benefits, and a retirement plan with a notable income range, we’ve got you covered!
CPA Services for Law Firms and Attorneys FAQs
What accounting services do you provide for law firms?
We deliver law-firm bookkeeping, IOLTA/trust accounting, client cost tracking, payroll, partner distributions/K-1s, budgeting, profitability/KPIs, tax planning, and business/individual tax returns for attorneys.
How do you help with Florida Bar trust accounting and IOLTA compliance?
We set up compliant trust ledgers, three-way reconciliations, monthly certifications, and audit-ready reports. We align procedures with Florida Bar rules and your bank’s IOTA requirements.
What is three-way reconciliation and why does my firm need it?
It matches (1) the trust bank balance, (2) the trust general ledger, and (3) the sum of client sub-ledgers. It’s required for trust/IOLTA compliance and prevents commingling or overdrafts by matter.
Can you clean up a trust account that’s out of balance?
Yes. We reconstruct client ledgers, fix coding, identify shortages/excesses, and create an audit trail. Then we train staff and implement controls to keep the trust account in compliance.
How should we track client costs and reimbursements?
We set up hard costs (advanced client costs) and soft costs (overhead) correctly, map them to matters in your practice management system, and ensure reimbursements flow to the right GL accounts and invoices.
Which practice management and accounting software do you support?
We work with Clio, PracticePanther, MyCase, Smokeball, TimeSolv, QuickBooks Online, and related tools for LEDES billing, timekeeping, and matter accounting—integrated with your chart of accounts.
What entity type is best for a law firm—LLC, PLLC, PA, S-Corp, or partnership?
It depends on liability, ownership, and compensation goals. We model tax outcomes (reasonable compensation, self-employment tax, basis, state apportionment) and coordinate with your attorney to choose or convert.
How do partner compensation and draws affect taxes?
We design compensation models (salary/guaranteed payments, bonuses, profit shares) and estimate quarterly taxes. We manage basis tracking and year-end K-1s to avoid surprises.
Can you manage payroll, benefits, and 401(k)/cash-balance plans for firms?
Yes. We run payroll, set up retirement plans, coordinate employer matches, and ensure W-2/1099 compliance. We also advise on partner retirement allocations and cash-balance plan feasibility.
What deductions do law firms commonly miss?
Matter expenses, bar dues, CLE, legal research, marketing, home-office (if eligible), mileage/auto, tech subscriptions, and Section 179/bonus depreciation on equipment—documented to withstand audit.
How should we handle staff bonuses and gifts for tax purposes?
Bonuses belong on payroll (W-2) so they’re deductible to the firm and properly taxed to employees. We set policies that avoid reclassifying deductible comp as non-deductible gifts.
Do you help with multi-state tax and remote attorneys?
Yes. We analyze nexus for payroll and income tax, register in required states, manage apportionment, and prepare multistate returns for the firm and partners.
Can legal services be subject to sales or use tax?
Rules vary by state and service type. We review your state’s statutes, registrations, and invoices to confirm when sales/use tax applies and set up compliant billing where required.
How do you improve cash flow and profitability for law firms?
We install KPIs (realization, utilization, WIP days, AR days), tighten billing/collections, implement retainers and evergreen trust funding, and align pricing with matter economics.
What internal controls do you recommend for a small firm?
Segregate duties for trust receipts/disbursements, require partner approval for trust checks, lock down user permissions, perform monthly closes, and document standard operating procedures.
Do you prepare both the firm return and the attorneys’ personal returns?
Yes. Coordinating entity returns with partner/owner 1040s and estimated taxes minimizes total tax and keeps distributions aligned with cash flow.
Can you help during a Florida Bar trust audit or state/IRS audit?
Absolutely. We provide representation, produce reconciliations and ledgers, respond to IDRs, and correct procedures to satisfy Bar, state, or IRS requirements.
How do we get started with your CPA services for law firms?
Schedule a consult, share your current books, trust bank statements, practice management reports, and prior returns. We deliver a scope, fixed-fee proposal, cleanup plan, and a 90-day roadmap.
